The ambidextrous mindset: how to balance exploration and exploitation

Great innovators are known for risk-taking and experimentation. But optimising needs a different skill-set that relies on refinement and efficiency. It is then rare to find people that can innovate and optimise.

A typical story is that a founder launches a startup, successfully grows it through the initial stages, then gets replaced by a more experienced CEO. However, the best results are produced when exploration and exploitation coincide.

• Exploration: The focus is on experimentation, risk-taking, discovery, and innovation. People who thrive here are more flexible and comfortable with uncertainty.
• Exploitation: The focus is on execution, refinement, and efficiency. Successful people are good at weighting options and making optimal choices.

Startups are in the exploration phase and change to the exploitation phase when they become mature businesses. It can be a costly mistake when they are unwilling to switch back when needed.